The big four bank will pass the Reserve Bank of Australia’s (RBA) March rate hike onto variable rate home loan holders 14 days after the move was announced.
Westpac has confirmed it will lift variable home loan rates by 25 basis points, in line with the RBA’s latest move to increase the cash rate to 4.10%, with impacted borrowers to realise higher rates from 31 March.
The bank’s reaction is consistent with its usual implementation window, having historically moved rates a fortnight after a central bank change.
A 25 basis point increase is expected to push Westpac’s lowest advertised variable rate from 5.49% p.a. to 5.74%% p.a. – a special offer advertised on its Flexi First Option home loan product for borrowers applying online.
For a borrower with a $700,000, 30-year mortgage, the rate change could add around $110 to monthly repayments.
“With overseas conflict impacting inflation and cost of living, we know these are uncertain times for many of our customers,” Westpac Chief Consumer Executive Carolyn McCann said.
“We are here to help, and if customers are concerned, we urge them to contact us as early as possible so we can talk through the support options available.”
It comes just weeks after Westpac hiked fixed home loan rates, with the lowest advertised at the bank now 5.79% p.a. (6.26% p.a. comparison rate*).
Westpac joins CommBank and NAB in announcing it will pass on the March hike in full to variable mortgage holders.
What could a rate hike mean for your wallet? Mortgage Repayment Calculator
Borrowers should review their repayment settings once the new rate takes effect.
Unlike many major lenders, Westpac does automatically reduce minimum home‑loan repayments when rates fall.
This means borrowers who didn’t choose to keep paying above the minimum after previous rate cuts may feel the impact of the latest hike more quickly, as their repayments may no longer sit above the new required minimum.
Customers who set their repayments manually – or rely on a fixed transfer amount – may need to update their payment to ensure they meet the new minimum once the rate change applies.
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| Lender | Home Loan | Interest Rate | Comparison Rate* | Monthly Repayment | Repayment type | Rate Type | Offset | Redraw | Ongoing Fees | Upfront Fees | Max LVR | Lump Sum Repayment | Extra Repayments | Split Loan Option | Tags | Features | Link | Compare | Promoted Product | Disclosure |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
|
5.54% p.a. |
5.58% p.a. |
$2,852 |
Principal & Interest |
Variable |
$0 |
$530 |
90% |
|
Promoted |
Disclosure | ||||||||||
|
5.44% p.a. |
5.35% p.a. |
$2,820 |
Principal & Interest |
Variable |
$0 |
$0 |
80% |
|
|
Disclosure | ||||||||||
|
5.64% p.a. |
5.68% p.a. |
$2,883 |
Principal & Interest |
Variable |
$0 |
$530 |
90% |
|
Promoted |
Disclosure |
Important Information and Comparison Rate Warning
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